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Average Pensioner Owes £25,000

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This is according to new research from independent equity release adviser Key Retirement Solutions.

And the average doesn’t tell the whole story – maximum credit card debts are as high as £90,000 with some pensioners clearing £250,000 unsecured loans and others struggling with £340,000 mortgages.

Key Retirement Solutions believes the credit crunch has driven pensioners to turn to credit cards to fund living costs when they’ve been unable to borrow in other ways and warns that the aftershock of the endowment mis-selling issue is another major factor.

Its analysis of more than 4,400 customers in 2010 shows one in three had debts run up from credit cards, loans or mortgages with many struggling with multiple debts.

Figures for the first quarter of 2011 show 31% of customers used some or all of the cash they raised from Equity release to clear their debts compared with 23% for the last three months of 2010.

The debt burden takes a major bite out of pensioner household income – in 2010 pensioners with debts were putting £385 a month towards repayments. On an average pensioner household income of £17,727 before tax that amounts to 26% of income going on debt repayments.

But again averages don’t tell the whole story – some over-65s were paying as much as £2,099 a month on mortgages with others making £1,200 a month repayments on loans and £2,000 a month on credit cards.

The average owed on a mortgage is £30,838 while average credit card debts were £10,296 and average outstanding loans were £11,386, Key Retirement’s data shows.

Dean Mirfin, group director at Key Retirement Solutions, said: “Pensioners in line with the rest of the country have struggled to borrow money in the past three years and have increasingly turned to credit cards to tide them over.

“They are also feeling the effects of the endowment mis-selling scandal as they’re coming to the end of mortgage terms and struggling to pay off mortgages as their endowments have missed payout forecasts.

“It all adds up to a major squeeze on incomes but there is silver lining in that they literally sitting on considerable wealth in their own home. Clearing debt will transform their finances and provide a welcome boost.”

Oh my lord. How stupid are we in Britain?

Guess what. If you're over 60 and have this kind of debt, you are absolutely fecked.

Bring on the crash.

simpsons_nelson_haha2.jpg

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Oh my lord. How stupid are we in Britain?

Guess what. If you're over 60 and have this kind of debt, you are absolutely fecked.

Bring on the crash.

simpsons_nelson_haha2.jpg

And if you are under 65 and working, you are paying for all those mortgages and pensions and winter fuel allowances and tv licences and free bus passes and extra tax because pensioners dont pay national insurance and care homes and free prescriptions and nursing homes pension top ups and defined benefit schemes that you arent going to be able to get a pension from and a state pension that you wont get until you are over 70.

The wonder is how pensioners manage to find something to spend their money on in modern day Britain.

For those under 65, Ha Ha, signed the Pensioners of Britain.

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Shocking stats, but the analysis is of their customers - ie. people who wanted/needed equity release. So not the average pensioner at all.

+1 Equity release firm publishes press release about analysis of 4,400 pensioners already using equity release. Discovers their savings did not generate sufficient income to live on, which is why these pensioners used equity release. Equity release firm has wet dream that all pensioners are the same and will become their customers.

A large number of pensioners owe feck all, namely the millions of pensioners who are not this firm's 4,400 customers.

Basically this "statistic" is b0ll0cks.

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Oh my lord. How stupid are we in Britain?

Guess what. If you're over 60 and have this kind of debt, you are absolutely fecked.

Oh I dunno, you can fall back on unlimited SMI payments for the rest of your life..

Why build up life savings only to have them inflated away by Merv when you could just spend it, enjoy it, then get someone else to foot the bill when you've no money left.

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The fact that pensioner can claim SMI is one of the biggest, most distgusting missused of money in this country.

About to retire? Take out a mortgage and have the government pay it off.

It goes beyond moral hazard and into the rhelms of WTF.

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The fact that pensioner can claim SMI is one of the biggest, most distgusting missused of money in this country.

About to retire? Take out a mortgage and have the government pay it off.

It goes beyond moral hazard and into the rhelms of WTF.

Pretty risky to do it though - I can't see SMI lasting long term, but your mortgage will.

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Pretty risky to do it though - I can't see SMI lasting long term, but your mortgage will.

Just move your funds to your offshore account, where you holiday, so you've still got it if you need it, then claim SMI. Job is a good un.

SMI is for ever and ever for pensioners.

Edited by exiges

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Only 3 years ago I was fed up reading articles about how great peoples retirements were, they were living longer, doing adventure holidays, extreme sports and having a great old time of it....

Now they are facing reposession and an extended lifetime in poverty.

I wish they'd make up their mind.

Will they all be having their Kite-Boards repo'd ?

Edited by TheCountOfNowhere

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+1 Equity release firm publishes press release about analysis of 4,400 pensioners already using equity release. Discovers their savings did not generate sufficient income to live on, which is why these pensioners used equity release. Equity release firm has wet dream that all pensioners are the same and will become their customers.

A large number of pensioners owe feck all, namely the millions of pensioners who are not this firm's 4,400 customers.

Basically this "statistic" is b0ll0cks.

Spot on.

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Smart move IMO

You can't take it with you and your debts get written off. SMI all the way :D

There were those drinking alcohol free dish water, they were Hemeling.

Then those who were Spending the Kids Inheritance were Skiing.

Now we have a group of people buying their homes at the taxpayers expense who are SMIling.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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